HS2: High-speed project in 'very serious situation', boss says

Published On Dec 30, 2024, 11:15 AM

The HS2 project in the UK is facing significant challenges, according to the new CEO, Mark Wild. An update revealed the project is in a 'very serious situation' with soaring costs, particularly for the Birmingham to London stretch, now estimated at between £45 billion and £54 billion. The project, originally intended to connect Birmingham, Manchester, and Leeds, has seen portion of it scrapped. Despite these setbacks, construction is ongoing, with 38 out of 55 miles of tunnels completed and a substantial workforce involved.

Stock Forecasts

IBD

Positive

HS2 represents a considerable investment in future infrastructure, which could potentially boost the economy despite its current challenges. The ongoing construction activities and job creation are positive indicators that may benefit related service and construction sectors.

CRH

Negative

While HS2 is moving forward, the ongoing cost overruns and project revisions indicate potential vulnerabilities. Companies directly involved in HS2 construction may face decreased investor confidence, impacting their stock performance.

Related News

Officials will be able to rubberstamp development plans without local authority permission under the changes.

TOL
CRH

Dreams of Europe emulating America are dying rapidly as freedom of movement in the EU seems to be coming to a halt as some member states introduce border checks.

FEZ
IBD

In July, Jack Chambers pledged €1.4bn in tax measures and new expenditure of €6.9bn